The Department of Energy has unveiled a sweeping overhaul of federal energy priorities, cutting $15 billion from climate programs and shifting focus to fossil fuels and nuclear power as part of President Trump’s energy reset.
At a Glance
- Energy Secretary Chris Wright announced a $15 billion cut to climate and Green New Deal programs in the 2026 budget
- The plan eliminates 24 projects totaling $3.7 billion deemed “wasteful”
- Trump’s DOE will prioritize coal, oil, gas, and nuclear innovation, including small modular reactors
- LNG export permits are being resumed; strategic oil reserves will be replenished
- Home efficiency rules are being rolled back to reduce regulatory costs for consumers
Energy Department’s Budget Shake-Up
In testimony before the House Energy Subcommittee, Energy Secretary Chris Wright laid out a dramatic realignment of federal energy policy. The proposed $15 billion in cuts target programs linked to the Green New Deal, which the administration views as inefficient or ideologically driven. The plan aligns with President Trump’s stated goal of “American energy dominance,” emphasizing security, affordability, and domestic production over decarbonization mandates.
Wright confirmed the Department has already scrapped 24 projects totaling $3.7 billion after a top-to-bottom audit of federal energy spending. These terminations, he said, reflect a shift toward outcomes-based funding: “If it doesn’t work or deliver clear returns, we’re done funding it.”
Fossil Fuels, Nukes Back in Favor
The new DOE budget doubles down on traditional energy sources. Coal, oil, and natural gas will receive renewed federal backing, while nuclear research—especially in next-gen modular reactors—gets a fresh boost. The administration has also restarted the approval process for LNG exports, previously frozen under Biden’s tenure.
Alongside fossil fuels, the DOE will expand its investment in AI-powered energy infrastructure and grid reliability, with new initiatives across National Labs aimed at reducing foreign dependence in critical energy technologies. Defense-related nuclear modernization also saw expanded funding.
Reserves and Regulations Rebalanced
One major initiative: restoring the Strategic Petroleum Reserve, which was heavily drawn down under the previous administration. Wright framed this as a national security priority, ensuring market stability in the event of geopolitical shocks or disasters.
At the same time, the Department is rolling back energy efficiency mandates on homes and appliances. Wright argued that such rules impose unnecessary costs and often fail to yield meaningful environmental benefits, saying the market—not the federal government—should drive energy-saving innovations.
Divided Reception on Capitol Hill
House Republicans largely embraced the budget’s pivot back to fossil fuels, calling it a return to “pragmatic energy policy.” Democrats, however, warned that gutting clean energy funding undercuts efforts to address climate change and modernize infrastructure. Some lawmakers challenged Wright on the long-term economic and environmental costs of slowing the clean tech transition.
Despite the pushback, Wright remained firm: “This budget is about energy security, reliability, and affordability—not ideological experiments.” Whether it marks the end of Biden’s green legacy—or simply a detour—will depend on how long Trump’s new energy doctrine lasts.
